Change at the Royal Mail - Privatisation and “Skinny” Profit Margins

Moya Greene, the CEO of Royal Mail, describes the currently net profit margin of the business as “skinny” and at a level that is unworthy of a commercial business. So it seems that she still has some way to go in her turnaround strategy for the Royal Mail before the privatisation process is completed.

Greene’s strategy at Royal Mail makes for a superb research case study for business students since it combines so many key and interlocked elements of business strategy. The Guardian article provides some useful research evidence:

- State-owned, but Govt looking to privatise

- Significant delayering of the Royal Mail organisational structure with substantial job losses in middle management layers

- Still looking to “modernise” - i.e. a change of culture

- Broadly supportive relationship with trade unions in recent times after a long-term period of union hostility and conflict with management

- Retrenchment - regardless of ownership structure, Royal Mail will be a “smaller and more efficient company” - a difficult and painful process

- Leadership: Moya Greene the first woman and first foreigner to run the Royal Mail

- Continued decline in mail volumes due to migration to internet and email for communication